The fixed-rate mortgage has the characteristic of fixing a monthly payment throughout the requested loan, since 2013 the fixed-rate mortgage has become the definitive weapon for obtaining new loans since they are very cheap than the other types of loans.
Some rectify that there are traditional banks that offer a loan of up to 80% of the value of the home with terms of up to 30 years. However, it must be taken into account that the cheapest offers are for shorter terms (10-20 years).
Also, it is important when signing any contract to specify the opening commission as it can usually be higher than in other types of mortgage and very rarely less than 1%.
Mortgage fixed interest and its advantages
When making this important economic decision as it is to mortgage a home, it is necessary to know what are the advantages it offers compared to other types of mortgage.
You must be in total security the type of mortgage that suits you and how it works, therefore, here the advantages of fixed interest mortgage :
- When applying for a fixed interest mortgage you will know in advance what is the monthly payment to pay since it will not be affected by interest rates such as the Euribor, so there is no surprise in the long run, this is very important when applying for a mortgage , because people who do not know about the Euribor usually get scared when they request another type of mortgage.
- The fixed interest mortgage is not much higher than other types of mortgages so they do a good financial play in many cases.
Disadvantages in mortgage fixed interest
As with any other type of financing this also has its cons, despite being a very viable economic outlet let’s see why it may not be the best for you:
- The fixed interest mortgage usually has monthly fees much higher than other types of mortgages, both for interest and for selected terms.
- In the fixed interest mortgage, the longer the term you request, the higher the interest rate of the mortgage and this does not happen in other types of loans .
- The Euribor is at its historic minimum, so there are other types of mortgages that have a better possible situation, in the short term.
Is it worthwhile to apply for a fixed interest mortgage?
Everything depends on the mortgage that best suits your needs, as well as its availability and the flexibility it offers.
If you believe that this type of mortgage is for you then you should inform in different banking institutions since each one will have its characteristics, as well as the requirements that are necessary to process your request.
Many banks will first study your case before giving you a specific answer, as well as the property that you will have to leave as insurance in the event of a non-payment to verify if the mortgage amount is relevant to the property and to be able to make the fixed interest mortgage .